FXStreet (Bali) - The FX Strategy Team at TD Securities reports on the CFTC Commitments of Traders Report - Week Ending Tuesday, June 3rd - , noting that specs increased longs in USD.

Key Quotes

"Speculative investors and CTA-type accounts ramped-up their net long USD position during the week ended on June 3rd ahead of big risk events such as central bank decisions from the RBA, BoC, ECB, and BoE, and US payrolls this morning."

According to the latest Commitment of Traders Report, the aggregate positioning change led to an increase in implied USD net longs from US$2.7 billion to US$6.6 billion, the highest since March 11th."

"The largest moves were registered in EUR and JPY positioning, with both currencies seeing sizeable net short extensions. Net EUR shorts went from -16.6k contracts to -33.0k, while JPY net shorts were extended by 15.2k contracts to a total of –74.2k."

"MXN remains the darling of speculative investors and CTA accounts. Net longs were extended from 83.3k to 86.0k, the most bullish bet on MXN since late May of last year.

"GBP experienced a minor net long reduction, going from +35.3k to +35.0k contracts."

"Among the commodity currencies, AUD saw a considerable change in positioning, with net longs being extended by 5.7k contracts to a total of +21.5k contracts. This bullish tone contrasts with the changes in positioning adopted towards NZD and CAD. Net NZD longs were scaled back marginally to +17.5k, whereas CAD saw a modest short extension from –21.8k to –22.7k contracts."

"Lastly, CHF saw relatively large short covering, with net shorts reduced from –3.9k to –2.0k contracts."

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